The US Dollar Index holds below 108.00 as mixed economic indicators raise concerns ahead of Friday's employment report.
ADP reports a stronger-than-expected increase in private sector employment for January, while Initial Jobless Claims also rise.
Investors anticipate the upcoming Nonfarm Payrolls data to gauge the Federal Reserve's future monetary policy decisions
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against a basket of currencies, struggles to hold its recent gains, trading below 108.00 on Thursday. Mixed United States (US) economic data fuels uncertainty ahead of the January employment report due on Friday. Investors remain cautious as labor market signals provide conflicting outlooks, with ADP data showing strength while jobless claims rise.
ADP reports a stronger-than-expected private sector job increase of 183,000 in January, exceeding the 150,000 consensus.
On Thursday, Initial jobless claims rise to 219,000, surpassing expectations of 213,000 and up from last week's 208,000, signaling potential labor market softening.
Continuing jobless claims increase to 1.886 million, above the forecast of 1.87 million and last week's 1.858 million.
Investors now focus on Friday's Nonfarm Payrolls report, projected to show 170,000 new jobs in January, down from December's 256,000.
The CME FedWatch tool shows a nearly 90% probability of the Fed keeping rates steady in March, reinforcing expectations of a prolonged hold. NFP data will dictate the pace of the markets bets.
Fed's Austan Gooble was on the wires during Thursday's session but didn't provide any relevant insights but noted that the pace of the cuts will be slower. In the meantime, the Fed's sentiment index remains in hawkish territory above 100 but downwards sloping.(Cay) Newsmaker23

Source: Fxstreet